UK businesses will have billions of pounds available to them through this new finance facility to support local growth and tackle climate change.
The new government-owned UK Infrastructure Bank is focused on increasing infrastructure investment across the United Kingdom. It will partner with the private sector and local government to finance a green industrial revolution and drive growth across the country.
The Bank’s core objectives are to:
- Help tackle climate change, particularly meeting the net zero emissions target by 2050
- Support regional and local economic growth through better connectivity, opportunities for new jobs and higher levels of productivity
The Bank will help to finance important projects in every region and nation of the UK in sectors including clean energy, transport, digital, water and waste.
Working in partnership with local government and the private sector, the Bank will harness investment tailored to the needs of specific infrastructure projects, offering a range of financing tools including debt, equity, and guarantees.
The Bank’s £22 billion of financial capacity will consist of £5 billion of equity, £7 billion of debt, and £10 billion of guarantees.
Private sector financing
The Bank provides a range of financing tools across the capital structure, including loans, credit enhancement and equity investments. Its investment team assesses each proposition on a case-by-case basis, working to identify the financing structure that fits their needs most appropriately and supports the Bank’s mandate.
Local authority lending
Later this summer, the Bank will offer financing to local and mayoral authorities across the UK, for high-value and complex economic infrastructure projects.
Chancellor of the Exchequer, Rishi Sunak said:
‘The UK Infrastructure Bank will accelerate our ambitions for tackling climate change and levelling up, while creating new opportunities across the UK as part of our Plan for Jobs.
‘Through the Bank, we are investing billions of pounds in world class infrastructure that will support people, businesses and communities in every corner of the UK.’